People in the UK are simply not putting enough money into retirement savings accounts, according to the opinion of one financial planning expert.
Churchouse Financial Planning’s director, Keith Churchouse, recently stated that as the government will most likely be increasing the state pension age sometime in the near future, Brits need to prepare for the change by upping the amount of cash they deposit in savings products such as ISAs in order to be prepared. The personal and business bank account expert said that the government may raise the state pension threshold in an effort to relieve a proportion of the pressure on public purse strings in the wake of the worldwide economic recession.
Implementing just such a change is more than likely an attractive option for the government as a way to mitigate the recession’s after-effects on the economy, said Mr Churchouse, explaining that it is simply inevitable that the state pension age will sooner or later be raised to 67. The financial planner also said that expectations are high that, over the next 40 years or so, it is likely that a further increase to the age of 68 will also take place.
Forewarned with this knowledge, Mr Churchouse urged that people who want to retire by the age of 67 to begin taking action now in regards to putting more money aside for the future, especially in light of the fact that UK savers are simply not doing so at the moment. The financial expert also said that the country’s ever increasing life expectancy rate means that the need to increase savings activity is a very real one in order to ensure having a comfortable retirement lifestyle.
However, this could prove to be difficult, as the recent reform report released by the Independent Commission on Banking has not been enough to aid people in their attempts to financially plan for their future, according to resarch from Triodos.